TORONTO - Canadian auto sales were essentially flat in August, with big vehicles like SUVs and pickup trucks dramatically outselling smaller cars amid a spate of consumer incentives.
Overall, 136,069 light vehicles were sold in Canada last month, a gain of 0.5 per cent from a year earlier, according to data compiled by DesRosiers Automotive Consultants on Wednesday.
Light trucks -- including sport utility vehicles and pickup trucks -- fared much better than their smaller counterparts, with sales up 12.2 per cent to 75,131. Meanwhile, passenger car sales dropped 10.9 per cent to 60,938.
Traditionally, the Canadian vehicle market is dominated by small cars, but their share of the market has slumped to less than 29 per cent so far this year -- the lowest level in more than a decade, according to a report by Scotiabank released earlier this week. Meanwhile, sales of pickup trucks are up nearly 40 per cent so far this year.
Higher incentives from most automakers have reduced new vehicle prices by more than five per cent since February. However, new vehicle transaction prices are actually up five per cent so far this year, as these discounts have actually encouraged people to buy bigger and more expensive vehicles.
Canadian sales gains stood in stark contrast to a dismal showing in the U.S., where it appeared that total industry sales could fall below one million new vehicles, making it the worst August in 27 years.
Ford Canada snatched up the biggest portion of the Canadian market, selling 24,029 units in August, up 8.4 per cent compared with the same month a year ago and the company's best performance for the month in 20 years.
Ford (NYSE:F) said the total number of cars sold for the month rose 18.9 per cent to 5,858, while the number of trucks sold rose five per cent to 18,176.
"Consumers are beginning to recognize Ford, not only as a great truck company but as a great car company too," stated David Mondragon, president and CEO of Ford Canada.
Ford said it will extend its employee pricing incentives until the end of September.
Meanwhile, GM Canada's overall sales were up 2.3 per cent to 23,536, while sales of the four core brands it didn't eliminate during its restructuring -- Chevrolet, Buick, GMC and Cadillac -- were up 18 per cent. Year to date, sales of GM's core brands were up 34 per cent compared to a dismal 2009, when the company was forced to file for bankruptcy protection in the U.S. and accept billions of dollars in aid from the American, Canadian and Ontario governments.
Overall, GM's truck sales were up 5.1 per cent while car sales were down 3.9 per cent.
"Our continued momentum demonstrates our four-brand strategy is squarely hitting the mark with customers," stated Marc Comeau, GM Canada's vice-president of sales, service and marketing.
GM has been offering employee pricing to draw customers into its dealerships and said it will use other incentives through September to continue to boost sales.
Chrysler -- which also restructured under bankruptcy protection last year with the help of billions of dollars in aid and a new partnership with Fiat -- said its August sales were up 12 per cent to 16,144. This is four per cent higher than the pre-downturn levels of August 2008.
Retail sales, excluding purchases by fleets like car rental agencies and taxi services, were up 20 per cent on strong sales of SUVs, pickup trucks and minivans.
"We are extremely pleased with our progress so far this year," stated Reid Bigland, president and CEO of Chrysler Canada. "Most of our 16 all-new or significantly refreshed vehicles are just starting to launch, and we are moving into this product onslaught with nine consecutive months of growth momentum behind us."
Chrysler is also using incentives to draw customers into its stores, including a new low-interest financing program that allows buyers to return a vehicle at the end of a predetermined time period of as little as three years.
Meanwhile, Toyota's Canadian sales fell 29.5 per cent to 12,862 as the company continued to feel the impact of a series of problems that have seen more than 10 million vehicles recalled worldwide in the past year. The Japanese automaker said it sold 11,609 Toyota brand vehicles, down 30.5 per cent, and 1,253 luxury Lexus vehicles, down 18.2 per cent.
The company said its bigger vehicles are selling better than its smaller offerings. Sales of the 4Runner sport utility vehicle were up nearly 350 per cent, while sales of the Sienna minivan were up 63.5 per cent.
Toyota said it will offer cash rebates of up to $6,000 on some models in September, as well as other lease and financing deals.
The Canadian vehicle market has been very competitive lately as Ford and General Motors vie for the top sales spot and Toyota tries to win back customers. To compete, the automakers are offering bigger and bigger incentives.
Among other automakers, Honda said combined sales of its Honda and luxury Acura divisions totalled 12,914 in August, a six per cent increase over August 2009.
Honda-brand vehicles sold 11,463 units, up 8.4 per cent from last year, led by record sales of the Honda CR-V SUV and an increase in Honda truck sales of 37 per cent.
The Acura Division, however, reported August sales of 1,451 units, an 11.7 per cent decline compared with last year.
Hyundai said it sold 11,403 vehicles in August, up 9.5 per cent over last year and the company's 19th consecutive month of sales gains. Year-to-date, the South Korean automaker's sales are up 16 per cent.
Nissan sold 6,102 vehicles last month, down 13.7 per cent, while its Infiniti luxury brand sold 780 vehicles, up 29.1 per cent to its best August ever.
Mercedes-Benz saw Canadian sales of 2,254, up 13.2 per cent, while BMW's sales gained 2.2 per cent to 2,342.
Volkswagen sold 3,369 vehicles in August, down 6.5 per cent, while Audi's sales rose 30.1 per cent to 1,376.
Kia sold 5,430 vehicles, up 16.2 per cent, while Mazda sales gained 8.8 per cent to 7,486, Mitsubishi sales were down 31.1 per cent to 1,282 and Subaru sold 2,328 vehicles, up 20 per cent.
In terms of year-to-date market share, Ford took first place with 17.2 per cent of the market; GM was second with 15.9 per cent; Chrysler was third with 13.4 per cent; Toyota was fourth with 11.3 per cent; and Honda was fifth with 8.5 per cent.
